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Builders Risk Insurance
Are you a builder, contractor, or construction business in the United States looking for builder’s risk insurance? If so, our insurance team at Contractors Liability® is ready to answer some common questions for you and provide you with a free quote as well.
Get Your Free Builder’s Risk Insurance Quote Below:
Why Purchase Builder’s Risk Insurance Through Contractors Liability?
You’ve worked hard for the things you have in your life, and insurance is there to help protect those things. You protect your car. You protect your house. You protect your family. So why wouldn’t you protect the materials and equipment that help keep your business running? With builder’s risk insurance the protection of your professional goods is possible, and with Contractors Liability it’s easy too. Contractors Liability can help you on your search to find the best quality policy for the lowest price. Our time in the contracting and construction business has made us experts in helping small business contractors build their reputation as a company and protect their physical and intellectual property.
It is always best to consult your insurance agency before making any decisions regarding your policy, but here are some primers to get the conversation rolling when the time comes to purchase a Builder’s Risk Policy.
Builder’s risk insurance is also known as course of construction insurance.
What is Builder’ Risk Insurance?
Builder’s risk insurance is what covers the equipment, tools, and products that are necessary for completing a job. These are not usually covered by general liability packages, so many small businesses find ways to bundle builder’s risk, liability, and worker’s compensation into one comprehensive policy package. While this might not be the most appropriate solution for every company out there, it’s a possibility that can be discussed with your insurance provider. If you need additional help, our team at Contractors Liability can also find you the right coverage package for your business.
Below are some of the professions which may need builder’s risk insurance, as well as some examples of what their coverage might include:
|Type of Business||What might be included in their Builder’s Risk Policy||What is not covered|
|Builders||Stolen tools, stolen equipment, stolen fixtures from a property in construction, vandalism||Loss as a direct result of criminal activities within the business, normal wear and tear of equipment, mechanical failure, acts of war, acts of nature (such as earthquake, landslide, etc.)|
|Contractors||Stolen tools, stolen equipment, stolen fixtures from a property in construction, vandalism||Loss as a direct result of criminal activities within the business, normal wear and tear of equipment, mechanical failure, acts of war, acts of nature (such as earthquake, landslide, etc.)|
|Developers||Objects and/or equipment that was present prior to starting work with a contractor, stolen fixtures from a property in construction, vandalism||Any loss that isn’t accidental, loss as a direct result of criminal activities within the business, normal wear and tear of equipment, mechanical failure, acts of war, acts of nature (such as earthquake, landslide, etc.)|
|Home or Property Owners||Any household items and/or equipment (like garages, lawn mowers, etc.) that were not present prior to starting work with a contractor, damage to property, stolen items, vandalism||Any intentional and/or criminal activity on the homeowner’s part, normal wear and tear of equipment, mechanical failure, acts of war, acts of nature (such as earthquake, landslide, etc.)|
|Retail Companies||Ensures that the property is covered during construction, as well as covering many of the things that are covered by other companies. This is especially important if you are renting or leasing in a building.||Any intentional and/or criminal activity on the homeowner’s part, normal wear and tear of equipment, mechanical failure, acts of war, acts of nature (such as earthquake, landslide, etc.)|
What Projects are Covered Under Builder’s Risk Insurance?
Builder’s risk insurance is a form of specialized coverage, which means that only certain types of construction and renovation projects are covered. These include:
- Installation of permanent fixtures, such as plumbing, electricity, and solar panels
- New construction of a building or structure
- Remodeling of interior fixtures in a home or other building
- Restructuring, such as removing load-bearing walls, adding a new staircase, or reinforcing a building’s foundation.
How Much Will Builder’s Risk Insurance Cost?
Everyone who buys or sells anything knows this question well. In most cases, the answer is straightforward. For insurance agencies, the answer is a lot more complicated. Insurance companies look at several factors when determining how much an insurance policy is going to cost.
- The age of your company
- Your company’s reputation
- Your company’s insurance track record
- The type of company
- Where your company is located
Why Choose Contractors Liability?
To spare you the trouble of reading a long monologue – we prioritize you.
We are not looking to simply find you a policy. We take every factor into consideration and work with only A-list insurance companies to provide you with the coverage that works for your company.
When you work with Contractors Insurance, you get:
- A 5-minute quote that is custom-tailored to your business
- Licensed insurance agents ready to find the best service for you
- Help whenever you need it
Builder’s Risk Insurance FAQs
Do I need to have builder’s risk insurance?
While builder’s risk insurance is not usually required by law, there are many clients that will not allow you to start a project without it. Having builder’s risk insurance shows your clients that you are committed to taking care of the property while under construction, and that you can hold yourself accountable concerning any losses that might occur during construction.
Are there any requirements to purchase builder’s risk insurance?
Almost all insurance policies have a set of terms to adhere to, but with builder’s risk insurance there are certain extra requirements that must be met by the purchaser. Generally, the purchaser must have two years’ worth of experience in construction or building, the purchaser has an insurable interest in the building, the project is either just beginning or less than 30% complete, and basic information about the project is provided to the insurance agency.
How long does coverage last?
In general, there are three different types of policies that most contractors go for. These include a 1-shot 6-month policy, a 1-shot 9-month policy, and a 1-shot 1-year policy. Additionally, some insurance providers will work out a custom policy expiration date, depending on the type of project that needs to get done. The policies are in effect until one or more requirements are fulfilled: The insured no longer has any financial interest in the property, the property is accepted as complete by the purchaser, the project is abandoned with no intent of being completed, or the insured building is put to its intended use.
At Contractors Liability, we are committed to the future of your project. For more information about how we can help you with a builder’s risk policy, contact us via web or call us at (866) 225-1950 for a 5-minute quote.
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